India Boosts Drone Manufacturing Incentives by 37.5% to Achieve Global Hub Status

New Delhi, Jul 29 (KNN) In a significant move to propel India's drone industry forward, the central government has increased its allocation for business incentives by 37.5 per cent, raising the total to Rs 165 crore over the next three years.

This substantial boost underscores India's ambitious plan to become a leading global drone centre by 2030.

The Production-Linked Incentive (PLI) scheme for drones and drone components, initially introduced in September 2021 with an outlay of Rs 120 crore, has now received this enhanced funding.

The scheme aims to promote local industry, reduce import dependency, and generate employment in this rapidly growing sector.

The government's commitment is evident in the recent federal budget, which allocated Rs 57 crore for the current financial year, up from Rs 33 crore in 2023-24.

This increase aligns with the broader vision outlined in the Economic Survey 2023-24, which emphasises relaxed rules and incentives to support India's drone ambitions.

Significant progress has already been made in the sector. The Directorate General of Civil Aviation (DGCA) has approved 116 remote pilot training organisations, which have issued 16,000 remote pilot certificates.

Additionally, 70 unmanned aircraft system models have received type certification, and 48 Indian companies are currently engaged in drone manufacturing.

The drone industry's growth is not limited to civilian applications. A government official, speaking on condition of anonymity, highlighted the critical role of drones in national security, stating, "While the impact of drones in civil space is immense, its use in the defense space is critical, as India works to keep its borders safe."

With over 400 startups now operating in the field, the extended incentive scheme is expected to attract more companies and boost local production.

The civil aviation ministry reports that under the PLI scheme, 23 small enterprises have been shortlisted for remote pilot training, with 11 focusing on drone component manufacturing.

Industry experts welcome the government's initiative but emphasise the need for continued support. Mark Martin, CEO and founder of Martin Consulting, an aviation advisory firm, commented, "A lot more needs to be done by the government to expand usage of drones and increase in allocation to Rs 165 crores seems on the right direction.

The government needs to ensure that a substantial portion of it is aligned to local manufacturing of drones, encouraging operations or training facilities."

(KNN Bureau)